The actuarial function has evolved from "number crunching" to "strategic business partner". With their deep understanding of mathematics, statistics, and business management, actuaries develop solutions to handle complex financial issues.
Today’s business environment is more complex and interconnected than ever before. At PwC Croatia, our actuarial team’s skills help our clients act decisively on the issues that really matter. With the help of our actuaries, leaders can make more accurate strategic decisions, even in industries beyond insurance.
In an increasingly complex and interconnected business world, clarity and tools that enable accurate decision making are crucial. We enable you to better understand your business and the impact of your decisions by transforming complex data into predictive insights. Our modelling solutions, combined with data analytics, help you predict and evaluate future challenges and opportunities.
New accounting and solvency regulations require changes to existing actuarial systems, processes and control environments. Drawing on our broad experience with financial institutions, (re)insurance companies, regulators and public entities, we provide insights and solutions that help you adapt to new technologies and realise their full potential.
PwC Croatia offers actuarial services across the life and non-life insurance and reinsurance industry, assisting clients that operate both locally and internationally. We are committed to delivering value and building long-lasting relationships with our clients.
As actuarial specialists, we work closely with our PwC audit professionals and leverage PwC’s global network to provide support to audit services. Actuarial audit is a review of financial and statistical data performed by actuaries to assess the accuracy of an organisation's financial statements and related information, with a focus on risk management and future financial obligations. It includes:
Review of internal processes and controls
Review of financial and regulatory reserves
Validation of assumptions, methodology and results
Valuation of solvency and capital adequacy
Independent assessment of outstanding claims reserves, prudential margins and IBNR provisions
Our team is highly experienced in IFRS and local standards, providing our clients with high-quality audits.
The implementation of IFRS 17 has been and continues to be a major challenge for the insurance industry, fundamentally changing accounting and reporting practices. According to the IFRS 17 Post-implementation and Finance Transformation survey, some insurers are still facing challenges associated with the (post) implementation of IFRS 17. Our aim is to ensure that key stakeholders in your business have a thorough understanding of IFRS 17 and its impact on the business. We can support you in:
Defining methodology documents and accounting policies
Setting up an assumption methodology and governance framework, monitoring the development of assumptions
Establishing a secure and effective control environment
Validating actuarial models
Understanding and preparing new disclosures
Integrating AI solutions into IFRS 17 procedures, as further outlined in the section on AI strategy, architecture and governance support
We have extensive industry experience, with accredited professional qualifications, in-depth expertise and knowledge of both local and global regulatory requirements, as well as insights into emerging market trends.
To deliver reliable results, actuarial models must be designed appropriately from the outset, and once in place, they require a feedback loop with regular validation. Today’s challenge is to implement well-governed and cost-effective models that enhance the company's competitive position. We develop models tailored to our clients’ priorities and diverse business decisions, understanding the impact these choices have on future financial, transactional, and operational objectives. This typically includes:
Analysis and interpretation of company data
Guidance and advice on best practices for model development
Life actuarial cash flow modelling using all major software solutions
General Insurance actuarial reserve modelling
Development of custom software solutions to automate complex actuarial processes
Validation and governance of models
We help our clients by developing models that accurately reflect their business needs.
To optimise its sales volume and market share, a company needs competitive products and an effective pricing strategy. We support product development, ensuring that a company’s products and services are well-suited to the market. This typically involves:
Market analysis
Product pricing, customer stratification, and customer behaviour analysis by using statistical models
Establishment of potential target for channels and marketing, underwriting, and claims department through forecasting models
Ongoing monitoring to assist with designing and adjusting business strategies to increase market competitiveness
We provide end-to-end solutions to our clients, covering the entire process from budgeting to business planning.
International Accounting Standard IAS 19 outlines the accounting and disclosure requirements for employee benefits. Among other things, this requires actuarial calculations of provisions for long-term employee benefits. We assist companies in calculating IAS 19 provisions by performing actuarial valuations, collecting data and applying actuarial techniques. This process typically includes the following steps:
Determining key assumptions (economic and demographic) to be used in the actuarial valuation
Using actuarial techniques to calculate IAS 19 provisions, including jubilee awards and retirement benefits, while considering key assumptions
Preparing a report summarising the actuarial valuation results, methodology and assumptions used
By providing these services, we help companies comply with IAS 19 requirements and ensure that their financial statements accurately reflect the cost of employee benefits.
Defining and implementing new actuarial models, including systems, data management and processes
Different businesses need to thrive in an environment driven by customers, competitors, disruptors and regulators. It is time to act, not just react. We help companies define their own digital strategy and roadmap – covering everything from AI automation and strategy to a robust data architecture embedded within governance functions that meet all regulatory requirements. We support all four pillars of an AI-inspired strategy reboot:
Knowledge: bringing senior executives up to date on AI’s advancements, identifying pain points that AI can solve, understanding what the competition’s activities, and exploring what is on the horizon
Priorities: identifying AI options that support a company's most critical objectives
Technology and talent: helping develop the right technology by - enhancing model accuracy and efficiency, transforming the data and automating the tasks
Governance: embedding transparency and security into AI from the outset to reduce errors and mitigate risk
AI is an embarrassment of riches: it can do so much, across the entire value chain. With our team’s help, companies can identify the strategic insights, focus areas, tools, and talent needed to harness its power.